MTBPS 2024: New Inflation Target and 2025/26 Tax Bills Tabled

Posted 12 November 2025 Written by Acts Online
Category Parliament

Brought to you by SA Legal Academy: The Minister of Finance has tabled the 2024 Medium Term Budget Policy Statement (MTBPS) in Parliament, alongside the 2024/25 tax legislation package and a revised inflation targeting framework.

In terms of the Money Bills Amendment Procedure and Related Matters Act, No. 9 of 2009, the National Treasury has introduced a new inflation target of 3%, featuring a one percentage point tolerance band. This revised target, to be implemented over the next two years, replaces the previous 3–6% target range. Treasury confirmed that while the shift may incur short-term fiscal costs, the long-term objective is to provide greater flexibility against inflationary shocks.

Legislative Tabled Documents

The following bills and documents have been formally introduced to the National Assembly for consideration:

  • Rates and Monetary Amounts and Amendment of Revenue Laws Bill, 2024;
  • Taxation Laws Amendment Bill, 2024;
  • Tax Administration Laws Amendment Bill, 2024;
  • Adjustments Appropriation Bill, 2024; and
  • Division of Revenue Amendment Bill, 2024.

The National Assembly’s Standing Committee on Finance and the NCOP Finance Committee have issued a joint notice calling for written submissions on the MTBPS. The deadline for submissions is 17 November 2025, ahead of parliamentary hearings scheduled for 19 November 2025.

Click here to download the joint notice for written submissions.

What this means for you, your business, or your clients

  • For yourself: No direct individual compliance obligation; however, professionals should note the 3% inflation target as the new benchmark for personal financial planning and long-term investment projections.
  • For your business: Firms must update their internal economic forecasting models and interest rate sensitivity analyses to align with the National Treasury’s shift to a lower 3% inflation target over the 2025–2027 period.
  • For your clients: Tax practitioners and legal advisors must review the specific provisions in the Taxation Laws Amendment Bill, 2024 and Tax Administration Laws Amendment Bill, 2024 to identify changes to filing requirements or revenue law interpretations affecting the 2025/26 tax year.

Originally published at https://legalacademy.co.za/news/read/medium-term-budget-policy-statement-tabled-with-2025-26-tax-bills

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